| The US slightly increases anti-dumping duties on Vietnamese pangasius; the US announces countervailing duties on shrimp from Vietnam, India, and Ecuador. |
Regarding the case, the Trade Remedies Department of the Ministry of Industry and Trade stated that the case was initiated on November 14, 2023, and was investigated by the US Department of Commerce at the request of the American Shrimp Processors Association, with the investigation period from January 1, 2022, to December 31, 2022.
In this case, the U.S. Department of Commerce selected two Vietnamese companies with the largest exports of the investigated product to the United States during the investigation period as mandatory respondents. On January 4, 2024, one of the two respondents submitted a request to the U.S. Department of Commerce to withdraw from the investigation. Therefore, only one company remains as a mandatory respondent in the case.
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| Processing shrimp for export. Photo: VNA |
Based on information from relevant parties, including the Vietnamese government and export businesses, and the US plaintiff, the US Department of Commerce determined the preliminary countervailing duty rates for Vietnamese businesses as follows: 2.84% for the single mandatory respondent and for all other respondents; and 196.41% for the single respondent not involved in the case. The 196.41% rate was determined based on available adverse facts that resulted in a higher duty rate compared to other businesses.
According to the Trade Remedies Department, from the beginning of the case, the US Department of Commerce investigated 40 programs/policies of the Vietnamese Government, belonging to the following groups: Loan and guarantee programs; corporate income tax incentive programs; exemption programs for receivables; land incentive programs; and financing programs.
Notably, the U.S. Department of Commerce is investigating a series of programs under the Fisheries Development Strategy to 2030, Vision 2045, as stipulated in Decision No. 339/QD-TTg dated March 11, 2021, of the Prime Minister , and the Fisheries Sector Development Program for the period 2021-2030.
On February 5th and 23rd, 2024, the U.S. Department of Commerce continued its investigation into several new programs, based on requests from the U.S. plaintiff, relating to: income tax, land lease exemptions; provision of electricity, water, wastewater treatment, and telecommunications services at below-normal value; and provision of broodstock, juvenile shrimp, and shrimp feed at below-normal value. This makes the number of programs under investigation in this case (nearly 50 programs) the largest ever in anti-subsidy investigations against Vietnamese exports.
In its preliminary findings, the U.S. Department of Commerce identified 24 out of nearly 50 programs under investigation as countervailable subsidies, while 13 were deemed not. The Department of Commerce also temporarily withheld preliminary findings on 12 programs as it needed more time to gather information and conduct assessments.
After the preliminary findings are published in the Federal Register, the U.S. Customs and Border Protection (CBP) will proceed with requiring deposits on shipments exported to the United States at the aforementioned preliminary countervailing duty rates.
The Trade Remedies Department stated that the U.S. Department of Commerce will conduct an investigation to verify the information provided by the Vietnamese government and businesses. This will be one of the bases for the U.S. Department of Commerce to issue its final conclusion, determining the official tariff rates for Vietnamese businesses.
Interested parties may also submit comments on the Preliminary Conclusion or opinions on the case no later than seven days after the date the final review report is issued in this case. Rebuttals to comments from other parties must be submitted no later than five days after the initial comment submission deadline.
Additionally, interested parties may submit written requests to the U.S. Department of Commerce to hold hearings, limited to the issues raised in the comments and counter-arguments, within 30 days of the date the U.S. Department of Commerce issues its preliminary findings notice.
The U.S. Department of Commerce is expected to issue its Final Decision on subsidies no later than August 5, 2024 (unless extended). Following this, the U.S. International Trade Commission will issue its Final Decision on injury within 45 days of the U.S. Department of Commerce issuing its Final Decision.
The Trade Remedies Department recommends that businesses prepare and cooperate well with the US Department of Commerce during the upcoming review, and also provide their views and comments on the US Department of Commerce's preliminary findings in case there are any unreasonable points or discrepancies with WTO regulations.
"The preparation and active participation of businesses during the review process, as well as their comments/rebuttals, will directly impact the final conclusion of the DOC, " the Trade Remedies Department emphasized.
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